Kochi: In a major policy shift, the Central Government has removed Section 13 of the Disaster Management Act, effectively revoking the National Disaster Management Authority’s (NDMA) power to recommend loan waivers for victims of natural calamities. This move comes just weeks after the Kerala High Court asked the Centre to clarify its stance on the loan waiver plea filed by victims of the Chooralmala-Mundakai landslide.

In response to the court’s directive issued on April 10, NDMA Under-Secretary Chandan Singh submitted an affidavit revealing that an official notification was issued on March 29, amending the Disaster Management Act and removing Section 13. With this change, the legal provision that once allowed the NDMA to suggest the waiver of bank loans for disaster-hit individuals has been struck down.

The affidavit makes it clear that, under the amended law, the loans taken by the victims of the Wayanad landslide now cannot be written off through the NDMA. This comes as a blow to the affected families who had hoped for financial relief.

The High Court had earlier observed that although the Reserve Bank of India lacks authority to mandate loan waivers, the NDMA had the legal power under Section 13 to intervene in such exceptional circumstances. The division bench had even criticized the central government for its apparent inaction and failure to utilize this provision to aid the disaster-stricken.

With the removal of this key clause, victims of future natural calamities may no longer have the legal backing to seek loan waivers through the disaster management framework, marking a significant shift in India’s disaster response policy.